Sustainability reporting in Indonesia
Indonesia is an advocate of the Sustainable Development Goals (SDGs). According to a report published by Ernst & Young (EY) Indonesia titled ”Sustainability matters: Increasing awareness of businesses in Indonesia”, a growing number of Indonesian business entities have started to respond to the sustainability issue.
In the same report, sustainability reporting is gaining momentum worldwide in line with the development of the Global Reporting Initiative (GRI) sustainability reporting framework.
The Indonesian Government introduced new legislation in 2012 making it mandatory for limited liability companies to include social and environmental responsibilities in their annual reports. EY Indonesia reports that the number of voluntary reporters has also increased in the country.
Denmark has been one of the pioneers in sustainability reporting since 2009. The confluence of an increasing interest in sustainability reporting in Indonesia provides an opportunity for the Danish Government to promote the diffusion of practices that can help achieve the Sustainable Development Goals (SDGs).
Specially designed and structured training programme
This six-month project, in collaboration with the Copenhagen Business School (CBS), is funded by the Embassy of Denmark in Indonesia. Among the deliverables are four video training modules and three management reports that incorporate the best practices in the field and cutting-edge research that brings impact to metrics and key performance indicators.
These materials will be made available online on the NEPCon Sourcing Hub – a free, online information and training platform that provides detailed risk analysis covering palm oil, timber, beef, and soy, for more than 70 countries around the world. We will also share these materials via NEPCon’s newsletter and social media to inform global stakeholders and companies working in the palm oil and related sectors.
These tools will be designed for the Indonesian context with the consideration that they can be easily adapted to other countries when needed.
NEPCon Solutions Asia Pacific Deputy Director, Lita Natasastra hopes to share knowledge with relevant companies. “NEPCon has evaluated the legal, social and environmental risks of sourcing palm oil from Indonesia, Malaysia and Ghana, and published the results of the analysis on the NEPCon Sourcing Hub.”
”The risk assessments cover 87% of global palm oil production. We would like to share all the risk assessments and related due diligence tools to Indonesian palm oil companies,” she says.
Ultimately, the project aims to drive the aspirational sustainability talk amongst Indonesian companies.
Knowledge transfer to Indonesian firms
Denmark is delighted to support other countries’ effort when it comes to balancing meeting business goals and communicating their sustainability performance and impacts, says Assistant Professor at CBS, Kristjan Jespersen.
“There is a clear desire among Indonesian companies to work in the best interest of the corporation itself and society. This project will be able to present tangible solutions with a clear emphasis on best practices and key metrics to help them reach their goals.”
“When Denmark first adopted this movement, companies were unsure what to include in the report. They ended up reporting almost everything in a 1,000-page report,” shares Kristjan.
Over the course of ten years, Denmark has learned a lot, from communicating the key metrics to the best engagement practices by comparing those metrics, explains Kristjan.
“We would like to share our learnings with Indonesian firms to prevent them from going down the same path so they can improve at a leapfrog,” he adds.
A launch event in Jakarta
NEPCon is hosting a launch event in Jakarta, Indonesia on 27 May 2019. The event will bring together around 100 representatives from companies and relevant stakeholders, as well as representatives from the Danish Embassy in Indonesia.
The project team will present the education modules and other toolbox and facilitate the discussion among participants on sustainability reporting during this event.
Read here to find out more about the project.
For enquiries about the event, please contact:
- NEPCon Solutions Asia Pacific Deputy Director, Lita Natasastra, email@example.com, +623614723499
- NEPCon Corporate Assurance Services Assistant, Ratna Patriana, firstname.lastname@example.org, +62 812 1243 4727